_OAKLAND UNIVERSITY



OAKLAND UNIVERSITY

ACCOUNTING 511

Fall 2002 Dr. Mohammad S. Bazaz

Tuseday 6:30-9:20 p.m. Office: 418 EH

Room: 169 SFH Office Hrs: T 5-6:15pm. Other time by appointment.

Phone: 370-4286

Email:Bazaz@Oakland.edu

COURSE OBJECTIVE:

This course will examine basic accounting theory, concepts, principles, and techniques relating to:

- Collecting financial information

- Recording this information in accounting books

- Reporting financial statements

- Analyzing and evaluating financial reports

- Basic problem in international accounting.

The focus of this course is on Financial Accounting from preparers and users point of view. Measurement and reporting requirements in accordance with the FASB, SEC, and IASC recommendations will also be emphasized.

The primary objective of this course is to enable the MBA students to learn how to read and understand financial statements, and to exploit the richness of information available from those statements. Upon completion of the course, students should have an appreciation for the usefulness and limitations of financial reports in equity evaluation and credit analysis.

TEXT BOOK:

Required:

Financial Accounting, latest edition, by Needles and Powers.

Hand out material from time to time, (additional material, related to each chapter, will be given for reading and exercise).

Optional:

Study Guide to the Financial Accounting, by the author.

Suggested for Reading:

The following is placed in the reserve section of the library:

Essentials of Accounting, 3rd edition, Robert Anthony, Addison-Wesley.

Fundamental Accounting Principles, Larson/Pyle

How to Read a Financial Report, 1984, Merrill Lynch, Pierce, Fenner & Smith Inc. (You may get a free copy of most recent edition of this by contacting a Merrill Lynch office, or call 1-800-merrill).

CLASS SECTION FORMAT:

Each class section will give a lecture on a chapter or two and discuss some exercises from the same chapter as examples. Following that, problems and other assignments of previous lectures will be discussed.

You are expected to read each chapter in advance and work on related exercises before coming to class and be ready for the lecture. The assignment will be collected at the end of each class. These assignments will be graded based on attempt and effort to solve the problems, not based on correct solutions. The collection of the assignment serves two purposes: (1) encourage students to work on problems before discussed in the class; (2) measure student attendants in the class. Late homework will not be collected or graded at all.

PROJECT:

One of the following two options is required:

I. Select two years annual reports of a firm (preferred the one you work for) and analyze them from financial point of view based on material covered in this course especially Chapters 5 & 15 of the book. The analysis should include brief description of the selected firm(s), various analysis, points of financial strength and weaknesses, and conclusion containing your comment on investing in or crediting to the firm. The analysis should include horizontal, vertical, and ratio analysis (both numbers and graphs). It is necessary to compare your selected firm with a competitor or an average industry. Your calculation, ratio determination, and data comparison (preferred to be computerized) should be in the forms of tables, charts, and figures either in the content of the text or in the appendices.

Each student (or a group of two or three students) should choose at least two years annual reports of two competitive firms (or a firm and average industry) and analyze them completely. The report on the analysis should be approximately ten well-typed pages (excluding tables, charts, figures, and appendices) due on December 3, 2002 and must be presented to the class.

Financial statements (annual reports and 10-ks) for many publicly traded companies are available on EDGAR web page, web page of each company itself and also on Microfiche in the library. However, you may find it much more convenient to work with actual hard copy annual reports or 10-ks. You can call the firms directly (see any of the corporate directories in the library, or see the first page of the microfiche 10-k) and simply ask for the reports you want. Most firms will respond to your request within a few days, and will send not only current reports, but reports of prior years, if you ask for them. You may also find ratios, historical data and other information of each firm as well as the average industry from COMPUSTAT database available in the SBA lab. Material of chapters 5 &15 of your book and the publication of Merrill Lynch “How to read Financial Reports” on the following web site are very helpful sources for this project:



Application of computer in analyzing financial statement is strongly suggested and will be credited.

II. Prepare a report of all necessary steps and considerations (from legal, accounting, tax, budgeting, planning, cash management and .... point of view) for starting a new (small) business. You need to discuss pros and cons of various types of firms by analyzing variables such as extent of liability, tax, organization and registration cost, financing, and future expansion.

NOTES:

1. Participation in discussions and question and answer periods in class is extremely important and is required for each student.

2. Class schedule may change subject to announcing at least one class period ahead of time.

3. Students are encouraged to bring practical as well as theoretical accounting problems (domestic or international) into the class for discussion.

4. Term paper must be typed and should be in good grammatical form and in an acceptable format (e.g. see Turabian, Kate L., A Manual for Writer of Term Papers, Theses, and Dissertations.)

ASSIGNMENTS:

Assignments are intended to assist the student in his/her understanding of the course material and will be discussed in class. Assignments will be collected based on the course syllabus. Late assignments will not be collected at all.

All the students are expected to have completed all the assignments for class discussion. Although time limitations may not allow us to work on all problems in the class, several problems especially those may deem to be difficult will be discussed. It is expected that students identify those problems, which are desired to be solved at the beginning of each class.

Grade Determination

Assignments 5%

Project 15%

Tests* (4@20points) 80%

Total 100%

* One test with lowest grade will be dropped.

CLASS SCHEDULE

Date Chapter Assignments

September

3 1

10 2,3 Accounting Information and Q1(1,3,11,13,22), 1[SE(4,6,8,9); E6; P4; sd6;FRA4]

Measurement

17 3,4 Measurement and Income 2[SE(2,4); E(4,8,12); P3; FRA3]

Accounting Cycle 3[SE(2-6); E(7,10,11); P7]

24 4 Accounting Cycle 4[E1, E5; P8; SD5]

Test #1 (Ch.1-3)

October

1 6,5 Merchandising Operations 6[SE(3-6); E8, E14, E15; P7; FRA 2]

8 5,15 Financial Reporting and Analysis

Test # 2 (90% Ch. 4&6 and 10% Ch. 1-3)

15 7 Liquid Assets 5[SE(4-8); E4; P7; FRA 1]

15[SE(4-10); E10; P4].

22 8 Inventories 7[SE(2-10); E(8, 11); P3; FRA 2]

29 Test #3 (90% Ch. 5-7 and 10% Ch.1-4&6)

November

5 (last day of official withdrawal)

10 Long Term Assets 8[SE(2-6); E(3, 10); P(5&6); SD 7]

12 9 Current Liabilities 10[SE(3-10); P2; SD 2; FRA 3]

11 Long Term Liabilities 9[SE(3-10); P8]

Test #4 (90% Ch. 8&10 and 10% Ch. 1-7)

19 12&13 Owners Equity 11[SE(1-6); E(7-9); P(3,8)]

12[E(3-5, 11,12); P8]

26 14 Cash Flow 13[E(2, 9-12); SD6]

14[SE(5-9); P(2, 6); SD4]

Nov. 27- De. 1 Thanksgivings

December

3 Test #5 (90% Ch. 11-14 and 10% Ch. 1-10)

Project Due/ Presentation

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download